The Hindu Business Line : Hyderabad Metro hopes to get more funds from Centre

The Rs 8,482-crore Hyderabad Metro Rail Project is banking on additional funding from the Centre following an assurance from the Prime Minister, Dr Manmohan Singh, during his recent visit to Hyderabad.

Initially, the project was to be funded through 40 per cent support from Central and State Governments with each pumping in about 20 per cent of the funds and the rest to be raised by the developer chosen in the competitive bids.

However, given the magnitude of the project, the State and the special purpose vehicle (SPV) have made out a case for additional financial support. During the presentation made on the project in the presence of the Prime Minister, the Finance Minister, and representatives of the Planning Commission, it was agreed to provide an additional support of 10 per cent.

This funding may come from the Jawaharlal Nehru Urban Renewal Fund. “We would pursue the issue of additional funding with the empowered institution, and the need to secure all necessary clearances and make the proposal concrete,” Mr N.V.S. Reddy, Managing Director of Hyderabad Metro Project, said.

Mr Reddy told Business Line: “The process to evaluate the technical bids with the help of consultants Span Semaly is now under way and likely to be completed by the month-end. Following this, we will invite financial bids from the consortia in fray.”

“Based on the consortia that sought least viability gap funding, we will choose the developer. We expect this process to be concluded by the end of September,” he said.

Project plans

As per plans, of the Rs 8,482 crore, 20 per cent is being provided through the Central Government support as a part of VGF and another 20 per cent by the State. The Hyderabad Metro Project seeks to decongest three dense corridors in the twin cities of Hyderabad and Secunderabad. As per plans, a sole developer would be chosen for all the three corridors as it was felt that it would make it a lot easier to integrate three lines.

If the Centre’s recent assurance comes through, the overall support to the project would go up to Rs 2,459 crore from the Central Government alone. This also means that the State contribution could be lower than initial estimates.

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